African equity markets opened the week on a mixed and generally cautious note on Monday, with early trade reflecting a balance between selective bargain-hunting and lingering uncertainty over global monetary policy, commodity prices, and domestic macroeconomic conditions. Investors across the continent appeared reluctant to take aggressive positions at the start of the week, favouring defensive sectors and highly liquid blue-chip stocks.
Southern Africa sets a subdued tone
In Southern Africa, markets opened marginally lower to flat, with South African equities showing limited early direction. Resource stocks traded unevenly as metals prices stabilised after recent volatility, while financials were restrained by concerns over global interest-rate trajectories. Retail and consumer shares remained under mild pressure, reflecting cautious sentiment around household spending and inflation expectations.
West African markets mixed as oil and banking stocks diverge
West African bourses began the session with mixed performances. In Nigeria, early trade saw modest gains in select banking and industrial names, supported by expectations of resilient earnings and balance-sheet strength. However, energy stocks were broadly flat as oil prices held steady but lacked a strong upward catalyst. Ghana’s market opened quietly, with limited volumes and little movement across most listed equities, as investors awaited clearer signals on fiscal and currency developments.
East Africa sees selective buying in key counters
East African markets opened slightly firmer, supported by selective interest in telecommunications, financial services, and infrastructure-linked stocks. In Kenya, early gains in a handful of heavyweight counters helped offset weakness elsewhere, though overall turnover remained moderate. Investors continued to monitor regional currency trends and government borrowing plans, which remain key factors influencing equity allocations in the region.
North African markets steady amid external focus
North African exchanges started the week on a largely stable footing. Egyptian equities traded in a narrow range as investors assessed global risk appetite and its implications for emerging markets. In Morocco, the market opened marginally higher, supported by utilities and consumer staples, while export-oriented companies tracked movements in European demand indicators.
Global cues dominate early sentiment
Across Africa, global factors remained central to market sentiment. Movements in US Treasury yields, expectations around future interest-rate cuts in major economies, and the outlook for China’s growth continued to shape risk appetite. Commodity-exporting markets were particularly sensitive to early price action in oil, gold, and base metals, which showed limited but steady movement in early Monday trading.
Outlook for the session
As the trading day progresses, analysts expect African markets to remain range-bound, with investors focusing on stock-specific fundamentals rather than broad market bets. Any sharp moves are likely to be driven by developments in global markets or unexpected domestic headlines. For now, the prevailing tone suggests a cautious start to the week, with participants prioritising capital preservation and selective opportunities over aggressive risk-taking.
Newshub Editorial in Africa – 22 December 2025
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